Life Insurance Quotes and Why they are So Wrong

Since I am a licensed insurance broker agent, I frequently write about insurance.  I am also asked about insurance from friends and family.

Every once in awhile someone asks me a question for which I think - Hey This is a Blog Post here.

At a party someone asked me:  Hey I got a life insurance quote and they cited some super low number.  Now I know this person and I know that they like to travel a ton... I knew without eveing knowing what the health situation or driving situation was that the term quote that they had recevied did not in reality pertain to them.  It was in essence - Bogus!

The basics of this discussion that ensued are the focus of this short article I wrote for the Valuist.
The article Titled: Why that Life Insurance Quote Might be Bogus is based on the incorrect assumption that consumers have about life insurance quotes.

In essence the problem is that American consumers see a term quote for a 35 year old female and think, hey!  I am a thirty five year old female - Im sure I will qualify for that rate too!   Fact is is that almost no one does.  Why?  for numerous reasons outlined below:

Reason One that a life insurance quote does not pertain to you:   Health

Term life quotes are based on your current and past medical history.  Those quotes you see are based on people in 100% perfect health with absolutely no issues.   Is your health perfect?

Reason Two that a life insurance quote does not pertain to you:   Weight

I realize that weight is a subset of health, but its so important that it is its own category.  You need to be perfectly slim to qualify.  Any slight variance can knock you out of best in class.

Reason Three that a life insurance quote does not pertain to you:   You Smoke

Yep, smoking disqualifies you for preferred plus pricing,  Although this is fairly well known, you would be surprised how many people do not,

Reason Four that a life insurance quote does not pertain to you:   You Travel

Yes, international travel can knock you out of preferred plus (best) term life insurance pricing.  Not every country, but enough that if you travel internationally you will need to speak with a specialist.

Reason Five that a life insurance quote does not pertain to you:  You Work

Yes, people that have jobs in one of about twenty classifications may find it hard to get term life insurance best in class pricing.  Some are obvious - such as the military, while others, such as truck drivers may be more mysterious.

Reason Six that a life insurance quote does not pertain to you:  Your Legal Status

Are you a legal resident of the United States?   This can matter.  Somewhat obvious, but again important.

Reason Seven that a life insurance quote does not pertain to you:  You Have Been Turned Down

If you have ever been turned down for a life insurance policy this can change your ability with certain carriers in certain situations.  One note here - Don't lie to your agent about this.

Reason Eight that a life insurance quote does not pertain to you:  Your Parents Health

Yes Sir this matters.  Not to the extent that your health matters - but... it does matter if your parents have contracted certain diseases before a certain age.

Reason Nine that a life insurance quote does not pertain to you:  Tickets

Tickets for driving matter, even minor ones.  Felonies and other major issues matter a lot more

But Wait there is more

This is not intended to be a comprehensive list, I haven't even discussed Scuba Diving... but you get the point - those low cost life insurance quotes - probably don't pertain to you.

Thanks for Reading